Posted on: June 28, 2021
WI 719 | Florida Market

 

Lauren Hardy will be with one of her Virtual Investing Mastery students, Jason Quero, a former real estate broker and a newcomer to the wholesaling market.

In this episode, Jason will share the difficulties securing deals in South Florida and how associating with Lauren has improved his virtual marketing strategy that amplified more deals. From having no leads to securing more than two deals a month.

How a Real Estate Broker in California is CRUSHING IT Wholesaling in the Florida Market With Jason Quero

Episode Transcription

In this episode, we have Jason Quero with me. He is one of my Virtual Investing Mastery students and we are going to talk about Jason’s adventures and going virtual with me. Jason, welcome to the show.

Thank you for having me, Lauren.

I am glad that we’ve finally got to do this because you are one of my more enthusiastic students that participates a lot and is so fun. You bring such great energy to the group. I know that you are going to bring so much energy to this show. I’m excited to have you guys. I know Jason is going to share a lot. Jason, we have a lot to cover. You are newer to wholesaling. Tell me a little bit about you. Where do you live and family life? Do you have another job?

I am here in the South Florida area. I’m in Palm Beach County with a very small family, a significant other. I was calling you the day that I was trying to close a deal as my girlfriend was giving birth. Hours later, I’m trying to negotiate a deal. To bring it all the way to the beginning, my background is in real estate. I have been a real estate broker for under sixteen years. The frustrating part that I had with the business was that over the years, I felt as though the actual marketing piece and let’s face it, the commission piece was getting smaller and just as competitive, especially in the South Florida area.

The freedom and the flexibility of the business were always there in terms of real estate. I love real estate but I knew that at the end of the day, my higher purpose was the niche of wholesaling, which is getting involved. Being able to take properties, specific scenarios, sellers and say, “I’ve got a solution and I can make it happen. I just need a smidge of time and we can get this deal done.” That’s what interested me in wholesaling while I was doing real estate.

Working from home and juggling two kids, I had a connection with you when I was doing a little bit of research. I’m like, “YouTube University only got me so far.” I felt as though I had a gazillion pieces and I did not have the map. I was like, “Where is the map?” I thought that the map would be in my backyard. The map is in my backyard but I didn’t have the deep pockets marketing-wise to sustain waiting 4, 5 or 6 months to try to close the whale of a deal. I’m like, “This can be done.” I’m hearing that people are doing this out of the state, out of the area.

You popped up, and between you and your two girls, I say, “I found it.” I’m going to tell you something, Lauren. The investment like anything else was a little scary but you make a point of hitting home early on that you are going to recruit that and then some if you follow the plan. I want to thank you for that. That was big.

People need to hear that. I try to say that in welcome calls a lot. I still buy into education. I bought a course on YouTube video creation. When I was getting started in wholesaling real estate investing, I was buying a course, at least every year. Sometimes two courses a year and these were $5,000, $10,000. Somewhere like $25,000 mastermind programs.

It’s very important for me when I was giving my credit card information to know that I am going to make this back. Every time I did, I did. I made it back. I learned something from that coaching program that I can attribute to bringing me a deal and I made the money back. I made my investment back. I always like to let everybody know, if you follow the instructions, you will make it back.

If you could figure out how to put a system together, wholesaling wouldn’t be that difficult.

If you do not deviate from the course and go in blindly knowing nothing. You mentioned conservatively, give yourself 90 days. Anything before 90 days, pat yourself on the back. You’ve got a little bit lucky but after the 90th day, if you have done everything and you can take an honest account of your actions, you are going to get a deal.

What was it like getting started? Real estate was not new to you being a broker. I always say the reason I am not into that side of things like residential real estate was that I felt like every time you’ve got a new listing, you’ve got a new boss.

You couldn’t be more right. You can say that we are still working for someone at the end of the day. When you realize that you are taking action into your own hands of being your own boss, you look at the decisions that you make and how you deal with people in such a way that you think, “People are going to do business with people that they like. Therefore, I need to be nice on the phone. I need to present what I’m trying to do and connect with those people.” At the end of the day, that’s when you have a huge pipeline of people that they may not call you the first day or the first month but if you follow the program and all of a sudden, a good follow-up plan, you’ve got a ton of people calling you back at different times

Being the investor in the transaction versus the realtor, that side of the business versus wholesaling or being an investor, there is a bit more control. You can control the transaction. You are like, “I’m the one with the money.” This is the way it’s going to go. The more deals you do, the more control, the more you lay it down and you are like, “This is how it’s going to go.” That’s a nice feeling. Whereas, when you are a realtor, that owner who owns the home, they can get abusive.

In their defense as well, if you take the average homeowner somewhere in the age of between 40 and 65 years old, I guarantee you that they have only bought and sold if they are lucky, maybe 5 or 6 homes. They are going to be skittish on how they want things because they are trying to control them. Meanwhile, us being the professionals or having a background in real estate, where I might have done 50 or 60 deals, it’s easy to see almost Matrix-like how these things starting to unfold, where you think, “It would be better if we did this. It would be better if we closed during this period because you’ve got this.” You can see the pieces unravel and be compensated a lot better than you would be if you were just a real estate agent.

Let’s get to the steps you took to go from real estate broker to now, “I want to try to do some wholesaling.” What were the first steps in that process? Let’s start with how you’ve got your education at first.

When I had first started like everybody else, I had been spending, I would say anywhere from 2 to 3 hours in drive time listening to various podcasts and YouTube shows regarding wholesaling. For most of what was being spoken about, I had the grassroots understanding and knowledge. I didn’t have the system of how to implement it and I thought to myself, “If I could figure out how to put it together, then wholesaling isn’t that difficult.”

It’s already what I’m doing now, only I’m putting my neck out there to do the deal myself. That motivated me more so than working for the individual seller or buyer that would or may not purchase something in this lifetime. That was the catalyst to say, “I still love real estate. It is still a great business. How can I sink my teeth into something meaty that would give me more control over my future?” That’s how I came into wholesale more full-time.

You were listening to podcasts and probably some YouTube University. Did you give it a shot on your own without mentorship?

WI 719 | Florida Market

Florida Market: The script was so crucial in being able to speak to the sellers.

 

Completely.

Tell us about round one.

Thank God, it was only one round one, which is I started using one of the platforms for the Direct Mail pieces. It’s called DealMachine, driving for dollars, which I have spoken to you about that on more than one occasion. When I started, I’m laughing because I thought to myself, “I probably spent 20, 30, maybe 40 hours throughout a couple of weeks saying, ‘This must be it.'” By the second 40 hours of driving around thinking to myself, it was more of a passive way of getting deals. I thought to myself, “How do I even know that they would consider?” I’m literally plucking a needle in the haystack trying to find someone that’s going to give me a call because I sent them a postcard.

In what market were you doing this?

Right in my backyard where the average sale price is $275,000, $325,000. They were like, “Sorry. We are not giving the house away or we are not that desperate we could put on the market.” This is Florida. Thousands of dollars later and hundreds of hours of driving, gas and frustration, I was like, “There’s got to be another way. This is not the way that everyone is starting.” It corralled me into getting more focused with some mentor or some coach, and that’s where we rolled into how I came across you or that program.

Did you have an idea that you needed to go virtual before you saw me?

I had a gut feeling only because as a seller myself thinking, “Why would I sell my property at below market value?” If I’m a hoarder, if I’m in probate, if I’m going through a bad divorce, I get that but where can I amplify that? It wasn’t in this area. It was too saturated.

There’s too much demand in your area.

Not to say that it still can’t be done. My own personal opinion is you need deeper marketing pockets because it’s not going to be 90 days. It’s going to be 180 days. Not to say I have given up on Florida but I’m happy with my market. I’m happy that more deals are flowing every month versus just maybe one deal a month. That’s too much for me also. It gives me too much anxiety waiting for one deal.

When you’re negotiating directly with sellers, honesty is the best policy.

Anybody could resignate because I’m hearing this a lot with the major Metros. Real estate is bananas throughout the country. Prices are up there especially in the major Metros or in areas where the average house price is above $250,000. It’s very saturated with not just wholesalers, flippers, hedge funds but also people that want to buy a house, consumers who want to buy a house to live there.

It makes more sense while it’s so saturated in your major Metro to go virtual to an area that maybe has a little bit more distress and usually, those are areas where the average house price is lower. Maybe the sub $200,000 and below markets. The market’s always turning but if you feel that you are hearing it in the seller’s voice that sellers are a little bit more motivated in Florida where you are from, you can come back, you do it in your backyard and you have your virtual market.

That is the goal but being in, I wouldn’t call it a tertiary market or secondary market but a market that’s under $200,000. What I have learned or noticed is that the amount of passive income that these sellers are getting rent-wise for their property, I’m so dumbfounded. As an example, I spoke to a couple, they had $100,000 property free and clear that they were making $1,300, $1,400 a month.

I wouldn’t sell it in good conscience unless you want to sell it at X amount, don’t sell it. Let me tell you something. They were so appreciative of how honest I was where I said to them, “What does this property serve for you?” They said, “It’s a great source of passive income for us. We don’t need to sell it but we were considering it. We don’t have any real income coming in.”

I say, “Maybe you shouldn’t sell the property because it sounds like you don’t need to.” I spoke to them as if they were my parents. I said, “Do you need to sell it?” It felt better giving them the honesty than saying, “I will give you $70,000 or $80,000. I can close tomorrow.” They said, “Give us a call in a few months because we have other properties that we might consider selling.” You never know.

You use the Lauren approach of getting the seller to like you and be honest.

It’s a mind trick and says, “I’m being honest with you.”

I’m all about being honest with sellers. I love to get practical advice. When you are negotiating directly with sellers, honesty is the best policy. If you feel like you are lying or whatever you are saying feels yucky, it feels like you are not exactly being straightforward with them. It’s going to show. They are going to hear and feel it, too. Just be honest.

Those are the deals that are never going to get to the closing table anyway because they are going to feel this rub. Something doesn’t sit right. A family member says this or that, and then you wanted to default. Those are your fallout deals on most of them but they are like, “Something is not right.”

WI 719 | Florida Market

Florida Market: The phone is your machine gun. If you want to take out the enemy, you have to get on that machine gun and start shooting.

 

We are always honest about everything we do. We don’t hide that we are wholesaling. We don’t hide anything from the sellers. We tell it from script number one, which is we say what we do. Literally in the first paragraph, “Let me tell you a little bit about who we are and what we do.” We disclose everything that we do and all of our business models. I have a way of saying it and if you guys are interested, I do give out that script for free. That’s my first script. The Seller’s Qualifying Script is what I call it.

I remember literally in the first 30 days of the course, I read the script, breakfast, lunch and dinner just to ingest it so that way, when I was talking to someone, they felt that it was coming from a place of honesty. The script was so crucial in being able to speak to the sellers that a lot of the students should go back and reread it just to see if their closing conversion increases.

The thing is it’s like a work of art but it’s a work of nine years of talking with sellers. In the first few years of my business, I was straight in California where at that time the average house price was maybe $600,000. Now, it’s $800,000 but these sellers were rough. I would get yelled at. As soon as I delivered my offer, I would get chewed out.

I learned that from the first conversation, you need to prep them for a low ball and you need to get them to like you so they don’t yell at you. When I would get yelled at, it would tear me down for the rest of the day. I would be in a downer mode. I would be all depressed and feel bad. It puts you in a bad mood. I hate rejection.

You’ve got to have to be able to roll with it because of that whole 80/20 Rule. That 80% of the people you are going to deal with are going to shut you down.

At least with my script, I feel like I break them down slowly in increments with it. I chip away at it, so they can’t come at me that hard because I already told them what I do. I already told them I’m going to lowball them pretty much. At this point they liked me, then we have a better dialogue and I feel that I can get somewhere. We are going to get to a price that might work for both of us. You’ve got started and now you have closed, how many deals so far?

I’ve got two that we just executed and I’m working always two months ahead.

It’s almost like you are in a two deal a month. You went from 0 to 2, and then eventually, it might even go from 2 to 5. You would be surprised it goes like that. It won’t just be three. It might go 2 to 4 or 2 to 5 because some of your older leads will season, and then you will get one a month that is someone from six months ago. It’s an old follow-up.

I religiously try to make sure that at least four days a week, that I am texting and 3 to 5 days a week that I’m calling. My marketing is texting and calling now. I would like to be to a certain degree done with calling and maybe go to another channel. My background was as a mortgage broker, which then transitioned into real estate and now wholesaling.

Leave no stone unturned.

I still have that passion for getting on the phone and talking to people because it’s challenging. They used to have this visual where they say, “The phone is your machine gun. If you want to take out the enemy, you have to get on that machine gun and start shooting. Otherwise, no one is calling you to do deals.”

I wanted to get this statue made. I will eventually, where it’s a phone and it says, “The more you make, the more you make.” It’s that simple. The more calls you make, the more you make. Follow-up calls included are so important. I was telling that to my team. They were like, “The texting platform was down and not working.” I was like, “You have a huge database of people that you could spend an entire shift, just calling and making your follow-up calls. Stop trying to just constantly pluck new leads you.”

You have leads and they are in your CRM if you have been putting all of them in your CRM, which you should have been. Call those people up because those people, anybody who one-time express interest in selling, even if it was a small subtle thought they had if something is happening in that person’s life, that thought now becomes a thing and it is like, “I’ve got to sell this house because now I need money.”

I can’t tell how many times I have submitted offers, either via text or verbally that I put in some CRM to follow up with because what I’m starting to notice now is 1 of 2 things. Deals are falling apart with their first buyer hitting my offer or they are saying, “We think we might list it with an agent.” I’ve got two agents that I befriended in the market. I have referred them, they close the deal, and go figure that they double ended it and they want it. They loved me. They still love me. They call me at least 1 or 2 times every week or so. “What have you got? Have you got anything that I could bring my buyer by?”

That’s the next program we are launching with Wholesaling Inc. is REI Revive with Chris Craddock. It’s something that I neglected all these years because I didn’t know how to work with agents. As soon as I get some time, I am having Chris put this because I need it. REI Revive is awesome. Definitely pick that out, too. I love the storytelling. I love that in a short amount of time, you have already closed two deals. You’ve got two more in the pipe. Could you tell anyone what to expect? From when you started my program and you were taking action?

I took the course the last week of October. The first week of November, I knew it was the holidays and I had a bunch of real estate deals closing, I did a solid 30 to 45 days of digesting everything but I knew the second week of January, I would hit it balls to the wall. You could say I’ve got lucky because within under 75 days, I’ve got my first deal.

I give you 90 days of taking action because you need leads in your system and then they need a season. That’s awesome. That’s really good.

It’s in the middle-end of March. You did make mention of this and it’s probably worth noting. I had gotten a couple of deals under contract, but then after going through the process, I realized that pricing wasn’t necessarily spot on with pricing and it was fallout when they didn’t want to go through with it. You have mentioned that before that there will be fallout so you’ve got no control of it.

That topic is not covered ever publicly, I feel like on podcasts.

WI 719 | Florida Market

Florida Market: One of the key things is you have to be speaking to the seller once a week.

 

They don’t want it. They really don’t want to give the reality that there’s a 50/50 chance it’s not going to see the light of day.

You have watched a lot of podcasts and YouTube University. That’s topics not brought up but what he’s talking about is it’s very common that you are going to get a property under contract and it’s not going to work out because it fails the inspection essentially. When you get to the due diligence part, when you inspect the home, it has more issues than you realize. If you are smart and you had a bulletproof contract that has an inspection contingency, you let the seller know, “This isn’t passing our inspection contingency.”

The seller’s got two options. The seller can reduce their price or the seller can walk away. A lot of times the seller walks away and then they come right back. I don’t have exact numbers on that but that’s very common, too. Follow up with that seller, “I know it fell out but are you may be thinking of coming down on price now that we know where we are at and where we need to be at. Can we do this?”

Even deals that pricing-wise where you shot yourself in the foot and might have priced it high, case in point. I had to pull out of a deal because I had gotten it out under contract and I sent a photographer to go out to take some pictures, and lo and behold, it was the rainiest day. When I get the pictures and he sent me a couple of videos, Lauren, literally half the property was submerged underwater.

The railings were bowed down. I thought to myself, “No wonder why there was a little bit of negotiating. No wonder why he liked my offer.” I told him, “We are going to have to pull out. He came back to me and he said, “Would you consider it for X amount?” I said, “We could talk about it in a month.” It’s funny that you even mentioned that there are going to be deals that you are going to have to pass on besides the fact that there are going to be deals that just don’t make it to the end.

Don’t give up. If it’s not going to work out at that price, always say, “What price will it work out for?” Maybe ask your buyers, “You guys all looked at this. I know this pricing is a little off but what would you realistically pay for this deal?” You then go approach the seller and have that discussion because it’s not a closed-door yet. The seller now has it in their head that they want to sell. They are ready.

They’ve got excited but again, with my script, we say, “These are very likely scenarios. We are going to come to look at it. There might be a chance that the property isn’t in the condition that we anticipated.” The perspective with that is funny. It’s interesting what a remodeled house sounds like to sellers.

They used to go that they remodeled.

That’s very new then, even several years ago. It depends on the area you are in. In the area that we are in, remodel means they painted over the old 50-year-old cabinets. That means remodeled to them. We have these kinds of conversations. I have this dialogue with sellers. I say, “When we really inspect it, we are going to know where we are at but don’t worry because we are going to keep you updated along the way. We are going to get somebody in there in the next 3, 4 days, whenever you can let us in, to do this inspection. We are not going to leave you hanging for 60 days. It’s next week or how’s Wednesday? Can we get someone in there?

If you have a good follow-up plan, you’ve got a ton of people calling you back at different times.

One of the key things is you have to be speaking to the seller once a week. You have to have a conversation. If you ghost them the second week and they are calling you, you did something wrong. If they are calling you to ask you, “What’s going on?” you are probably going to ask for some inspection period. It’s easier to soften the blow on a price reduction or delay of closing when you have maintained the rapport and the relationship with them.

That is some good stuff and that’s not just from wholesaling. You’ve got that from your past life being a realtor. That’s good advice. Please listen to that and take that seriously. Jason, this has been awesome and I know everybody got a lot out of this episode. I really appreciate your transparency.

Thank you so much for the motivation, kind words and wisdom because anyone that’s reading, everything that you have outlined in the course has been so transparent and accurate. If it hasn’t been accurate, it’s because you are not following the steps in the course and you are probably not doing the deals. If you are doing the deals, you have left no stone unturned. That’s for sure. I appreciate it as well.

Thank you. I hope you enjoyed that episode and if you are thinking about going virtual, check out www.VirtualInvestingMastery.com. It’s the coaching program that Jason is in and we have been having a lot of fun. We have a great group and most importantly, we have a lot of students who have found a ton of success leaving their backyard and going virtual. If you guys want to find me on Instagram, I am @ThisMomFlips. That’s my handle. Jason, how can anyone if they maybe want to get ahold of you, are you on Instagram as well?

I knew you would ask me.

What’s your handle?

My handle is @Jason.QueroREBroker.

Thank you so much for reading, Jason. Thank you so much, and we will see you next time, everybody. Take care.

Important Links:

About Lauren Hardy

WI 684 | Most Profitable ListsLauren Hardy is a Virtual Investing expert and Real Estate influencer who owns multiple companies in the real estate industry including real estate investment, coaching, and software companies. She is also a Wholesaling Inc coach and co-host of the Wholesaling Inc Podcast.

Her experience in the last decade has been focused on real estate investing and creating products and services to serve the real estate investing community. If you are interested in investing in real estate virtually, house flipping, or virtual landlording, Lauren’s your girl.

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling